GST Rip Off

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Alorria
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GST Rip Off

Postby Alorria » Tue Aug 31, 2010 1:35 pm

I just got a letter from my Telstra saying...

NZ Govt passed a law increasing GST to 15% FROM 1 October 2010...

... the new GST rate of 15% will apply to all charges invoiced to you on or after 1 October - the new rate will apply even if charges were incurred before 1 October, but invoiced on or after 1 October...

So they are charging 15% for charges incurred when the law does not apply!! - what a rip off. How many customers will be over charged during that time?? How much money do they actually stand to make?

Will they even have to pass that extra money onto IRD who will be expecting the current rate up until 1 October?

Is it even legal to charge the added GST for services completed but not billed before the GST increase?

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FC
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Re: GST Rip Off

Postby FC » Tue Aug 31, 2010 1:50 pm

I suppose if they are invoicing you on the date after it, then they will have to pay GST on that, and so you have to, so it is legal. It doesnt sound like they are making a bunch of 2.5% scrilla off you.
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Alorria
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Re: GST Rip Off

Postby Alorria » Tue Aug 31, 2010 2:07 pm

maybe i'm wrong, that's what i understood from the letter

why don't they do an invoice for things up until 1 oct, then an invoice for things after first oct? - kind of like a final reading?

ruff
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Re: GST Rip Off

Postby ruff » Tue Aug 31, 2010 2:11 pm

I have my own company and as such have been receiving all the ins and outs of the GST rise.

The new GST rate of 15% only applies to goods and services supplied on or after 1st October 2010.

How companies choose to handle this is up to them. They wont be making any money out of this, in fact if it helps you sleep at night you'll be happy to know its likely going to be costing them money.

As Aiden has pointed out do the maths and you'll see 2.5% on your tiny arse bill is a tiny arse amount anyway.

Blame National.

CFH
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Re: GST Rip Off

Postby CFH » Tue Aug 31, 2010 2:29 pm

making this thread probably cost you more than the 2.5% on your bloody phone bill. Instead of making this thread you could have gone and rubbed mud on yourself and sat on the street begging for five minutes and you'd probably make it back and saved yourself some dignity while you were at it

Alorria
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Re: GST Rip Off

Postby Alorria » Tue Aug 31, 2010 3:33 pm

nice assumptions... it's a business phone bill

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Re: GST Rip Off

Postby CFH » Tue Aug 31, 2010 3:39 pm

and you felt like having a whinge about it lol

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Re: GST Rip Off

Postby Maleficent » Tue Aug 31, 2010 3:59 pm

ruff wrote:I have my own company and as such have been receiving all the ins and outs of the GST rise.

The new GST rate of 15% only applies to goods and services supplied on or after 1st October 2010.

How companies choose to handle this is up to them. They wont be making any money out of this, in fact if it helps you sleep at night you'll be happy to know its likely going to be costing them money.

As Aiden has pointed out do the maths and you'll see 2.5% on your tiny arse bill is a tiny arse amount anyway.

Blame National.



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skirmish
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Re: GST Rip Off

Postby skirmish » Tue Aug 31, 2010 4:52 pm

ruff wrote:I have my own company and as such have been receiving all the ins and outs of the GST rise.

The new GST rate of 15% only applies to goods and services supplied on or after 1st October 2010.

Not according to KPMG.

Just by chance, to my office this afternoon:

KPMG wrote:The NZ time of supply rule for GST is the earlier of a) issue of an invoice or b) any payment.

In this instance it means that if the invoice has been issued prior to 1 October the rate is 12.5% regardless of whether any money has been received. If they pay after 1 October the rate is still 12.5%.

However should a change have to happen to the invoice or a new invoice issued after 30 September then it must be @15%.


thus even if your phone charges or whatever are supplied before October 1, the business reserves the right to invoice you at their convenience, and thus it's perfectly legal that they might invoice you after October 1 and expect you to pay 15% GST on all goods or services within the billing period, even if the goods or services were provided before then.

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Re: GST Rip Off

Postby ruff » Tue Aug 31, 2010 4:55 pm

Alorria wrote:nice assumptions... it's a business phone bill


then you get to claim the GST back anyway. seriously... think before posting.

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Re: GST Rip Off

Postby ruff » Tue Aug 31, 2010 4:59 pm

skirmish wrote:
ruff wrote:I have my own company and as such have been receiving all the ins and outs of the GST rise.

The new GST rate of 15% only applies to goods and services supplied on or after 1st October 2010.

Not according to KPMG.

Just by chance, to my office this afternoon:

KPMG wrote:The NZ time of supply rule for GST is the earlier of a) issue of an invoice or b) any payment.

In this instance it means that if the invoice has been issued prior to 1 October the rate is 12.5% regardless of whether any money has been received. If they pay after 1 October the rate is still 12.5%.

However should a change have to happen to the invoice or a new invoice issued after 30 September then it must be @15%.


thus even if your phone charges or whatever are supplied before October 1, the business reserves the right to invoice you at their convenience, and thus it's perfectly legal that they might invoice you after October 1 and expect you to pay 15% GST on all goods or services within the billing period, even if the goods or services were provided before then.


Read and or quote my whole post... you will notice this little line saying what you took a paragraph to get across...

"How companies choose to handle this is up to them."

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Re: GST Rip Off

Postby Marrow » Tue Aug 31, 2010 4:59 pm

thread delivers

martyrdamn
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Re: GST Rip Off

Postby martyrdamn » Tue Aug 31, 2010 6:03 pm

had to pay an accountant $600 re some retarded time of supply/invoicing issues on a property because of the GST rise. better than an extra 2.5% on 400k, but still, shit sucks.
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xsfat
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Re: GST Rip Off

Postby xsfat » Tue Aug 31, 2010 6:08 pm

On the other hand, some councils are sending out invoices for paying rates in advance using the current rate of GST.

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Re: GST Rip Off

Postby scott penk » Tue Aug 31, 2010 6:24 pm

ruff wrote:
Alorria wrote:nice assumptions... it's a business phone bill


then you get to claim the GST back anyway. seriously... think before posting.


yeah, unless they are under the 40k threshold or flying under the radar..

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skirmish
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Re: GST Rip Off

Postby skirmish » Tue Aug 31, 2010 7:22 pm

ruff wrote:The new GST rate of 15% only applies to goods and services supplied on or after 1st October 2010.

ruff wrote:Read and or quote my whole post... you will notice this little line saying what you took a paragraph to get across...

"How companies choose to handle this is up to them."

i read it, and the fact still stands, you got it wrong. the gst rate does not apply only to G&S supplied on or after October 1. companies are bound by the gst rules which are different from what you quoted, and the only thing companies get to handle is sending the invoice.

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bridge.
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Re: GST Rip Off

Postby bridge. » Tue Aug 31, 2010 7:25 pm

ruff wrote:
skirmish wrote:
ruff wrote:I have my own company and as such have been receiving all the ins and outs of the GST rise.

The new GST rate of 15% only applies to goods and services supplied on or after 1st October 2010.

Not according to KPMG.

Just by chance, to my office this afternoon:

KPMG wrote:The NZ time of supply rule for GST is the earlier of a) issue of an invoice or b) any payment.

In this instance it means that if the invoice has been issued prior to 1 October the rate is 12.5% regardless of whether any money has been received. If they pay after 1 October the rate is still 12.5%.

However should a change have to happen to the invoice or a new invoice issued after 30 September then it must be @15%.


thus even if your phone charges or whatever are supplied before October 1, the business reserves the right to invoice you at their convenience, and thus it's perfectly legal that they might invoice you after October 1 and expect you to pay 15% GST on all goods or services within the billing period, even if the goods or services were provided before then.


Read and or quote my whole post... you will notice this little line saying what you took a paragraph to get across...

"How companies choose to handle this is up to them."


:cry: What he said was hardly standing on your toes. I found the extra detail interesting actually.

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Re: GST Rip Off

Postby xSUSPECTx » Tue Aug 31, 2010 10:05 pm

CFH wrote:making this thread probably cost you more than the 2.5% on your bloody phone bill. Instead of making this thread you could have gone and rubbed mud on yourself and sat on the street begging for five minutes and you'd probably make it back and saved yourself some dignity while you were at it


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whats the verdict, is he trolling or just mad as a hatter?
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Re: GST Rip Off

Postby CFH » Tue Aug 31, 2010 10:56 pm

You've got one of your man hate crushes don't you


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